Grandchildren whether you are blessed with one or a dozen are a special gift in life. Each new addition ushers in an exciting time when you celebrate your family’s past and your hopes for the future. As a grandparent, you’ll have a lasting, positive impact on the future because your grandchildren will carry your love and influence throughout their lives. The job of parenting belongs to others now, so relax and enjoy this new stage of life. But your support will always be needed, both by the grandkids and by their parents, so be prepared to provide guidance, give advice (when asked), and lend a sympathetic ear.
Your support may be financial, too. Many grandparents give money or establish savings accounts to help with school expenses that are sure to come. If you are financially able, you may wish to consider funding a Coverdell Education Savings Account (CESA), which has an annual contribution limit of $2,000 per child. If your retirement finances are secure, and you want to help more, you might set up custodial accounts under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA). (Currently, you can give up to $12,000 per year to each grandchild without incurring the gift tax.)
Ask your registered Western & Southern Life representative about college savings options and investment vehicles to make the most of your gift and help you balance your own needs for retirement and health care.
Products for this Life Stage:*
Once your own retirement and health-care goals are determined, protect your grandchildren with whole life insurance.
Mutual fund investments are a great way to build a secure financial future for your grandkids.
More Smart Advice for Grandparents:
Once your retirement is secure, it’s smart to look at ways to transfer wealth sooner, rather than later. WSLife.com representatives can help.
Even families of modest wealth can establish a trust to help ensure that the money you leave is distributed wisely.
Western & Southern Life does not provide tax or legal advice. Please contact your tax or legal advisor regarding your situation.
*Products suggested for this Life Stage are not a specific recommendation or solicitation to purchase. Mutual funds are offered through an affiliate of Western & Southern Life.